RUBIS_REGISTRATION_DOCUMENT_2017

FINANCIAL STATEMENTS 9

2017 consolidated financial statements and notes

4.11 OTHER PROVISIONS (EXCLUDING EMPLOYEE BENEFITS)

ACCOUNTING POLICIES Provisions are recognized when the Group has a current (legal or implicit) obligation to a third party resulting from a past event, when it is likely that an outflow of resources representing economic benefits will be necessary to settle the obligation, and when the amount of the obligation can be reliably estimated. Dismantling and clean-up Provisions are made for future site rehabilitation expenditures (dismantling and clean-up), arising from a current legal or implicit obligation, based on a reasonable estimate of their fair value during the fiscal year in which the obligation arises. The counterpart of this provision is included in the net book value of the underlying asset and is depreciated according to the asset’s useful life. Subsequent adjustments to the provision following, in particular, a revision of the outflow of resources or the discount rate are symmetrically deducted from or added to the cost of the underlying asset. The impact of accretion (the passage of time) on the provision for site rehabilitation is measured by applying a risk-free interest rate to the provision. Accretion is recorded under “Other financial income and expenses.” Litigation and claims Provisions for litigation and claims are recognized when the Group has an obligation relating to legal action, tax audits, vexatious litigation or other claims resulting frompast events that are still pending, when it is likely that an outflow of resources representing economic benefits will be necessary to settle the obligation, and when the amount of the obligation can be reliably estimated. The Group takes advice from its counsel and lawyers in order to asses the likelihood of the occurrence of risks and to estimate provisions for litigation and claims by including the probabilities of the various scenarios envisaged taking place. Restructuring In the case of restructuring, an obligation is established once the reorganization and a detailed plan for its execution have been announced, or started. If the impact of time value is significant, provisions are discounted to present value.

Non-current (in thousands of euros)

12/31/2016

12/31/2017

Provisions for contingencies and expenses Provisions for clean-up and asset renovation

46,828 36,104 82,932

43,027 34,138 77,165

TOTAL

• provisions relating to risks or disputes that could potentially lead to action being taken against the Rubis Group. Provisions for the replacement of fixed assets are compliant with IAS 16. The Group has estimated its clean-up and dismantling costs largely based on the findings of

outside consultants. In compliance with IAS 16, the present value of these expenses was incorporated into the cost of the corresponding facilities.

Provisions for contingencies and expenses include: • a provision relating to the Rubis Group’s obligation to customize some of the assets obtained from its acquisitions, recorded as of December 31, 2017 in the amount of €9 million;

Foreign exchange differences

Changes in consolidation Allowances

12/31/2016

Reversals * Reclassifications

12/31/2017

(in thousands of euros)

Provisions for contingencies and expenses Provisions for clean-up and asset renovation

43,027 34,138 77,165

2,548 7,509

15,628

(13,557) (5,141) (18,698)

88

(906)

46,828 36,104 82,932

1,100

(13)

(1,489) (2,395)

TOTAL

10,057

16,728

75

* Of which €5.3 million reversed and unused.

2017 Registration Document I RUBIS

• expenses incurred in customizing the assets; • the €2.5 million reversal of provisions for clean-up previously recognized and relating to the Petroplus Reichstett site (see note 3.2.3 of the 2013 Registration Document); • the Group’s obligations in terms of collecting energy savings certificates;

• payments in legal disputes between the Group and third parties; • the Group’s assessment of the risks for which it could be held liable. Provisions created or reversed during the period are not material when taken individually.

The changes in scope are as follows: • the acquisition of Dinasa’s operations in Haiti for €9.2 million; • the acquisition of the additional 50% of Rubis Terminal Petrol (formerlyDelta Rubis Petrol) for €0.8 million. Change in provisions for contingencies and expenses mainly reflects:

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